Hims(US:HIMS) GlobeNewswire News Room·2025-08-15 21:07Core Viewpoint - Hims & Hers Health (NYSE: HIMS) faces significant challenges following a drop in share price due to an FTC investigation into its advertising practices and the termination of a collaboration with Novo Nordisk, which raised safety concerns regarding its weight-loss drug offerings [1][2][5]. Group 1: Company Challenges - The share price of Hims & Hers dropped significantly in after-hours trading after reports of an FTC probe into its advertising practices and subscription cancellation difficulties [1]. - Novo Nordisk ended its collaboration with Hims, citing serious accusations that Hims was jeopardizing patient safety, which has led to a pending securities class action lawsuit against the company [2][4]. - Following the termination of the partnership, Hims' stock price fell more than 34% on June 23, 2025 [5]. Group 2: Financial Performance - Hims reported total revenue of $545 million for Q2 2025, reflecting a 7% sequential decline [6]. - Revenue from compounded GLP-1 weight-loss drugs decreased to $190 million from $230 million in the previous quarter [6]. - The revenue per subscriber fell to $74 from $84, attributed to the off-boarding of some GLP-1 subscribers [6]. Group 3: Legal and Regulatory Issues - A class action complaint alleges that Hims made false and misleading statements regarding its promotion of illegitimate versions of Wegovy, which posed safety risks to patients [4]. - Hagens Berman is investigating claims from investors who suffered substantial losses during the class period from April 29, 2025, to June 23, 2025, with a lead plaintiff deadline of August 25, 2025 [3][7].